Five suppliers ordered to pay £765k into government renewable scheme

Posted at September 22, 2021 » By : » Categories : News » Comments Off on Five suppliers ordered to pay £765k into government renewable scheme

Ofgem has ordered five energy suppliers to make payments of around £765,000 in total into a government renewable energy scheme.

The regulator has issued Colorado Energy, Igloo Energy Supply Limited, Neon Reef Limited, Whoop Energy Limited and Symbio Energy with provisional orders to make the payments and meet their Feed-in Tariff (FiT) levelisation obligation.

The FiT scheme, administered by Ofgem, provides financial incentives to owners of small-scale renewable energy generators, paid for by suppliers.

Any supplier that fails to pay its Year 11 FIT levelisation obligation by the 17th September deadline is in breach of the rules of its supply licence.

All licensed electricity suppliers in Britain are obligated to participate in the FiT levelisation process, declaring the amount of electricity they have supplied and making a financial contribution towards the scheme in proportion to this.

Levelisation is the mechanism by which the total cost of the FiT scheme is divided up across licensed electricity suppliers.

The cost is allocated between suppliers in proportion to their share of the electricity supply market of Britain, whilst taking into account any FiT contribution they have already made.

Colorado Energy failed to pay £261,406.12, Igloo failed to pay £316,582.44, Neon Reef Limited failed to pay £37,350.76, Symbio Energy failed to pay £146,238.66 and Whoop Energy limited failed to pay £3,780.22 – delaying the distribution of the amount to generators and other suppliers.

Ofgem stated: “If the suppliers fail to comply with the order made against them, Ofgem may take further enforcement action and they could end up having their licences revoked or facing a financial penalty.”

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